Of the four imperatives discussed in this chapter ―economic, political, quality, and administration―which would be most important to IBM in its efforts to make inroads in the Pacific Rim market? Would this emphasis be the same as that in the United States, or would IBM be giving primary attention to one of the other imperatives? Explain
In efforts to make inroads in the Pacific Rim market IBM is most likely to give main attention to the economic imperative. In the past, computer customers made a purchasing decision based on factors like service, support and brand names, but now, with price being the main factor, people are coming to a conclusion that there is no need in buying a particular brand to get good quality. In the Pacific Rim, computers are seen now as a common good.
In the United States as well as the Pacific Rim markets, IBM uses a combined approach to strategic planning. IBM might use the economic imperative if it has a strong market in a certain country. If the market needs a calculated response, IBM can use a political or quality strategy. IBM can use the administrative imperative if flexible decision making is required to make a deal. Because of the need to coordinate strategy both globally and regionally, IBM uses most of the time the economic and political approaches.